Unrealised profit adjustment in consolidated balance sheet of associate

ACCOUNTANT (Student) (559 Points)

06 June 2020  

Unrealised profit to be eliminated from cbs for

Stock of x includes 25000/- purchased from h which sells at cost+25% 

Stock of h includes 36000/- purchased from x which sells goods at cost+ 20%

H has 35%shares in x... 

Solution is given as consolidated p&l a/c 3850

                                 To investment in associate 3850

 

My doubt is why are they adjusting consolidated p&l for both it will be only stock of x Ltd??